Breaking from the recent trends of poor listing day perfomances, the initial public offer (IPO) of ARSS Infrastructure Projects on Wednesday made a strong debut on the domestic equity bourses gaining nearly 67%. The shares of ARSS Infrastructure Projects which was issued at Rs 450 per equity shares got listed on the National Stock Exchange (NSE) at a premium of 40% at Rs 630 and further soared to hit an intra-day high of Rs 751.80 before ending the trading session at Rs 750. The stock gained Rs 300, or 66.67%, on NSE. Around 1.57 crore shares changed hands on NSE generating a turnover of Rs 1,111 crore.
The listing day gain for the stock of the company is far higher when compared to the recent listing on the domestic bourses. Out of 14 IPOs that got listed so far in 2010, five were at a discount while seven companies listed at a premium in the range of 1% and 25%.
The stock of Jubiliant Foodworks remains the second highest gainer in 2010 surging 58% on its debut while DB Corp gained over 25% on its listing.
The Rs 103 crore ARSS IPO was subscribed 47.62 times with heavy participation from all categories of investors. The portion reserved for high net worth investors was subscribed 125 times, the Qualified Institutional category was subscribed by over 49 times while the retail portion was subscribed 19 times. Interestingly, CARE had assigned an IPO grade of ?2? to ARSS indicating below average fundamentals.
?Seeing the huge demand for the public offer, we were expecting the stock to list at a premium of around Rs 145 to Rs 150 to the issue price. But the impressive gains above it was a pleasant surprise for us,? said a lead manager to the issue. According to him the greater thrust on India?s infrastructure sector in the budget and a bullish trend in the secondary market created further demand for the stock pushing the share prices higher.